China, the world’s largest automobile market, slipped in its readiness for electric vehicles as existing subsidies failed to stimulate demand.
China ranked fifth globally behind Japan, US, France and Germany in the adoption of battery-powered vehicles, falling from third place in 2010, according to a McKinsey & Co report released today. A lack of consumer demand, limited models and inadequate charging stations were other reasons contributing to the decline, McKinsey said.
“You can’t just buy an electric vehicle and when you find one, you have no place to charge it,” Axel Krieger, Beijing- based partner at McKinsey, said in a phone interview today. “There are just a limited number of cars you can get and they might not fit your needs.”
The findings underline the challenges that China faces in trying to expand the use of cars beyond conventional fossil fuel-powered vehicles. The State Council, or cabinet, this week approved a plan to stimulate the development of electric vehicles through financial support and individual subsidies, recycling batteries and building charging points.
Automakers including General Motors, Volkswagen AG and Daimler AG have announced plans to introduce hybrids or electric vehicles in China, as the government seeks to cut smog and its reliance on imported oil.
China built about 16,000 charging points last year, less than 5 percent of the government’s 2015 target for 400,000 charging stations, according to McKinsey.
